Why Science Based Targets Are India's Gateway to Climate Leadership

Climate action is no longer optional for Indian businesses—it's a competitive necessity. As global markets tighten environmental regulations and investors prioritize ESG performance, Indian companies face a critical choice: lead the climate transition or risk being left behind.

Enter the Science Based Targets initiative (SBTi), a globally recognized framework that's helping companies set emission reduction targets grounded in climate science. With over 100 Indian companies already committed, SBTi is becoming the gold standard for corporate climate action in India.

At C² (Csquare), we've been helping Indian companies navigate this critical journey—from initial carbon assessment to validated SBTi targets and beyond. Here's everything you need to know about why SBTi matters and how to get started.

What Exactly is Science Based Targets(SBTi)?

The Science Based Targets initiative is a global partnership between CDP, UN Global Compact, World Resources Institute (WRI), and World Wildlife Fund (WWF). At its core, SBTi helps companies set greenhouse gas emission reduction targets that align with the Paris Agreement's goal of limiting global warming to 1.5°C above pre-industrial levels.

The numbers speak for themselves:

• 10,000+ companies worldwide with validated targets

• 2,800+ companies actively committed

• 91% of participants report positive business impact

This isn't just about compliance—it's about transforming how businesses operate in a carbon-constrained world.

The Indian Advantage: Why Now?

India is already leading emerging economies in SBTi adoption, and there are compelling reasons why forward-thinking companies are jumping on board:

1. Investor Confidence and Capital Access

ESG-focused investors are directing capital toward companies with credible climate commitments. Science-based targets signal long-term value creation and climate resilience—qualities that translate directly into better valuations and easier access to green financing. C² helps companies develop the comprehensive GHG inventories and reduction strategies that resonate with ESG investors and financial institutions.

2. Global Market Access

The European Union's Carbon Border Adjustment Mechanism (CBAM) is already reshaping international trade. Indian exporters without credible emission reduction strategies risk carbon tariffs and losing access to lucrative markets. SBTi targets demonstrate compliance with evolving international requirements.

3. Regulatory Readiness

From BRSR (Business Responsibility and Sustainability Reporting) to SEBI's ESG disclosure mandates, India's regulatory landscape is rapidly evolving. Companies with SBTi targets are already ahead of the curve, prepared for upcoming carbon market regulations and stricter disclosure norms. C² provides integrated compliance management across BRSR, TCFD, CSRD, EcoVadis, and IFRS, ensuring your SBTi commitments align seamlessly with regulatory requirements.

4. Competitive Edge in Supply Chains

Global corporations are cascading climate requirements down their supply chains. Increasingly, having SBTi targets isn't just nice to have—it's a prerequisite for winning RFPs and maintaining relationships with multinational clients.

5. Real Environmental Impact

Beyond business benefits, SBTi drives genuine emission reductions across Scope 1, 2, and 3 emissions, allowing companies to make meaningful contributions to India's climate goals while building operational resilience.

Indian Companies Already Leading the Way

India's SBTi pioneers span multiple sectors, proving that climate leadership isn't limited to any single industry. At C², we're proud to support companies across these diverse sectors in their climate journey:

IT Services: Wipro made history as the first Indian IT company with validated SBTi targets, committing to net-zero by 2040. Tech Mahindra followed with an ambitious FY2035 net-zero goal, while Infosys has been carbon neutral since 2020 and earned CDP 'A' List recognition.

Heavy Industry: UltraTech Cement is targeting a 27% Scope 1 intensity reduction and 69% Scope 2 cut by FY2032. JSW Steel, rated 'A' by CDP, is leading steel sector decarbonization in India.

Mining: Hindustan Zinc became the first Indian mining company with validated SBTi targets, demonstrating that even emission-intensive sectors can commit to science-based pathways.

Diversified Conglomerates: Mahindra Group has applied an internal carbon price of $10 per tonne of CO₂e to capital expenditure decisions, embedding climate considerations into core business strategy.

These companies aren't just meeting environmental obligations—they're gaining competitive advantages, attracting investment, and positioning themselves as leaders in India's economic transformation. Your company could be next, and C² can help you get there.

The SBTi Journey: Your Roadmap in 5 Steps

The path to validated science-based targets is structured and achievable. At C², we guide companies through each step with expert support:

Step 1: Commit – Sign the commitment letter and register on the validation portal. You'll have 24 months to develop and submit your targets. C² helps you understand what this commitment means for your organization and plan your roadmap.

Step 2: Develop – Conduct a comprehensive GHG inventory covering Scope 1, 2, and 3 emissions. Use SBTi tools and methodologies to model reduction targets aligned with climate science. C² conducts complete carbon assessments using GHG Protocol frameworks and models science-based targets using SBTi tools and sector-specific guidance.

Step 3: Submit & Validate – Submit your targets through the SBTi portal. Technical experts will review your submission for alignment with criteria, typically within 12 weeks. C² prepares and submits your target validation forms with full documentation, managing the entire technical review process.

Step 4: Announce – Once validated, publicly announce your targets within 6 months and get listed on the SBTi Target Dashboard. C² supports your announcement strategy and helps position your company as a climate leader.

Step 5: Disclose & Track – Report emissions annually through CDP, annual reports, or sustainability reports. Review and update targets every 5 years. C² provides ongoing tracking, reporting support, and ensures compliance with disclosure requirements.

SBTi V2.0: What's Changed?

The Corporate Net-Zero Standard recently underwent significant updates. Here's what Indian companies need to know—and how C² helps you navigate these changes:

Cyclical Validation: Targets now require revalidation every 5 years with annual progress disclosure. The "set and forget" approach is over—continuous improvement is now the standard. C² provides ongoing support to ensure your targets remain validated and ambitious.

Company Categories: Companies are now classified into Category A (large/high-income) and Category B (mid-size/emerging). Category B companies receive proportionate flexibility—good news for many Indian firms navigating their climate journey. C² helps you understand which category applies to you and optimize your target-setting strategy accordingly.

100% Scope Coverage: Targets must cover 100% of Scope 1 emissions, with separate reduction pathways required for each scope. This ensures comprehensive coverage and accountability. C² conducts thorough Scope 1, 2, and 3 assessments to ensure complete coverage.

Performance-Based Approach: The shift is from ambition to accountability. Companies must demonstrate real progress, not just commitments on paper. C² creates actionable decarbonization roadmaps that deliver measurable emission reductions.

How C² Supports Your SBTi Journey

As India's dedicated carbon and ESG consultancy, C² (Csquare) provides end-to-end support for companies embarking on their SBTi journey:

🎯 Carbon Assessment – Complete GHG inventory across Scope 1, 2 & 3 using GHG Protocol frameworks

📊 Target Development – Model science-based reduction targets using SBTi tools and sector-specific guidance tailored to Indian industries

✅ SBTi Submission Support – Prepare and submit target validation forms with full documentation and technical expertise

🚀 Decarbonization Strategy – Create actionable roadmaps for emission reductions across your operations

🌱 Carbon Credit Trading – Access our integrated carbon credit marketplace to source and trade high-quality carbon credits for residual emissions

📋 ESG Compliance – Comprehensive compliance coverage including BRSR, TCFD, CSRD, EcoVadis, IFRS, and TNFD

🔬 Life Cycle Assessment – Product-level carbon footprinting to understand and reduce your value chain emissions

The C² Advantage

What sets C² apart is our deep understanding of the Indian market combined with global best practices:

✅ India-focused expertise – We understand the unique challenges and opportunities for Indian companies

✅ End-to-end support – From GHG inventory to target validation and beyond

✅ Sector-specific strategies – Customized decarbonization approaches for IT, manufacturing, cement, steel, textiles, and more

✅ Integrated solutions – SBTi targets aligned with your broader ESG and compliance requirements

✅ Proven track record – Successfully supporting Indian companies in their climate leadership journey

India's economy is at an inflection point. Companies that embrace science-based targets today will be the climate leaders of tomorrow—attracting capital, accessing global markets, winning competitive bids, and building resilience in a rapidly changing world.

With over 100 Indian companies already committed to SBTi, the question isn't whether to join this movement—it's how quickly you can get started.

C² (Csquare) provides the expertise, tools, and carbon credit solutions you need to achieve your science-based targets. As your dedicated carbon and ESG partner in India, we're here to transform your climate ambitions into validated, actionable commitments.

The time for science-based climate action is now. The roadmap is clear. The benefits are proven.

Ready to start your SBTi journey?

👉 Connect with C² (Csquare) to get started! 🌐 csquarecarbon.com ✉️ info@csquare.co.in